The HELOC boom began in 2003. Most of these revolving lines of credit were interest-only loans for the first ten years. After that, they convert into 15-year fully amortizing loans. This means that beginning next year, these loans start to transform into a fully-amortizing loan. The number of HELOCs which do this increases in 2014 and even more in 2015 and 2016.

What will these homeowners do when their HELOC payment soars from a few hundred dollars per month to more than $1,000. The monthly payments that will go into effect in California are mind-boggling.

Finally, let's not forget all those homeowners who have pulled their home off the market in the past year. A recent survey published by ProTeck Valuation Services showed that MLS listings had dropped more than 35 percent over the last year in metros such as Phoenix, Miami, Atlanta, Orlando, Tampa and Riverside,